SAC Fund Manager Steinberg Guilty in Insider-Trading Case
Liikanen Group Report on Bank Structure Due Oct. 2, EU Says
A European Union-mandated expert group will next week publish its blueprint on internal firewalls that banks should put in place to protect taxpayers and customers.
The group, led by European Central Bank council member Erkki Liikanen, will hand over its report to Michel Barnier, the EU’s financial services chief, on Oct. 2, said Stefaan De Rynck, a spokesman for Barnier.
Liikanen’s team has weighed options including forcing lenders to ringfence their retail operations, so shielding them from losses incurred from investment banking, according to documents published on the EU’s website.
Lenders including Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC), have criticized plans by U.S regulators to ban commercial banks from proprietary trading, saying the draft measures would increase risk, raise costs for investors and be vulnerable to legal challenge.
The U.K. is already moving ahead with plans to force the largest lenders to insulate consumer units from investment banking, following recommendations last year by a government- sponsored panel led by John Vickers.
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